Question

Corning produces Gorilla Glass screens that are used in the production of laptops, tablets, and smartphones. Corning promotes its product to final consumers to increase business demand for digital devices made with the specialized, toughened glass. This illustrates ________.

Answer 1

Answer: Derived demand

Explanation: Derived demand is a demand for what is used in the manufacturing procedure to produce goods or services in a given period by a company or partly finished materials that satisfy human wants and provide value utilized as inputs in the manufacturing of other goods. This happens as a result of the need for another product used by the customer to satisfy wants or goods that are partly finished.

In this case, Gorilla glass screens are being used to produce laptops, tablets, and smartphones, making Gorilla glass the intermediate good and the later aforementioned, the final good.

Answer 2

Answer:

derived demand

Explanation:

Derived demand refers to the demand for one product (usually a component, part or complement) because the demand of another product exists. Products are generally not made of a single piece of something, specially electronics and complex products are built with several components or parts. In this case, gorilla glass screens are a major component in smartphones, and the more smartphones sold, the more gorilla glass screens sold.